Cashflow modelling as a tool in protection planning
The underinsurance of UK families is well documented, with the Royal London’s State of the Protection Nation research confirming that consumers still don’t fully understand their own protection needs.
Savvy financial advisers are utilising cashflow modelling (a.k.a. cashflow planning) technology to help their clients recognise how protection should underpin any financial plan. This helps them overcome some of the challenges they previously faced, such as:
Difficulty proving the sum assured required
Demonstrating the impact of ‘Do Something’ vs ‘Do Nothing’
Truly engaging clients in the conversation and handling the “I can’t afford those premiums” conversations
Cashflow planning is not just for Wealth Planners
Since we launched intelliflo planning last year, we’ve seen a steady increase in the number of mortgage and protection advisers actively using the solution with their clients. In particular, they like:
That it’s a comprehensive piece of kit that’s easy to use
The Protection Wizard as it helps them quantify the sums assured needed in the event of death or illness
The side-by-side scenario feature as it’s easy to demonstrate the impact of doing something vs doing nothing
Overall, they are finding that clients engage in these real-time conversations because they can immediately see the implications associated with their decisions.
Seeing the wider potential of cashflow modelling
Cashflow modelling is a tool for all financial advisers, whatever the specialism. There is real value in being able to focus a client on the bigger picture, helping them visualise “what would happen if...” regardless of their age or wealth, and irrespective of the type of advice they are seeking.
The most important part of the adviser-client relationship is ensuring the client is engaged and able to interact in the planning process. Cashflow modelling helps clients visualise your advice and make informed decisions, regardless of the complexity of their situation.
Cashflow modelling doesn’t have to be complicated. intelliflo planning is a user-friendly, intuitive platform that allows you to easily and clearly demonstrate the value your advice brings.